NIKE Inc. ventured into charged political territory when it put National Football League quarterback-turned activist Colin Kaepernick at the center of its latest advertising campaign, risking backlash to align itself with a cause that has resonated with young consumers.
The Oregon-based shoe giant saw opposition to its decision in the aftermath of the announcement when many shoppers began calling for boycotts of its products. Images of people torching Nike shoes and cutting swooshes out of gear surfaced on Twitter and other social-media sites, countered by expressions of support for Nike and Mr. Kaepernick. Shares of the company fell more than 3% Tuesday, though they are still up about 27% for the year.
The reaction laid bare the perils of Nike’s decision to feature Mr. Kaepernick, who emerged as the face of protests in 2016 when he began kneeling on the field during the national anthem to call attention to racial injustice and social inequality. The player protests Mr. Kaepernick helped kick-start have been a contentious issue for the NFL, with criticism coming from President Trump and fans who have labeled them unpatriotic.
Now Nike faces questions on two fronts: whether its reinvigorated partnership with one of the most controversial figures in sports will prove fruitful; and how this move will affect its relationship with the NFL. While Nike is one of the NFL’s biggest partners with a reported billion-dollar deal that was extended in the spring, the league is engaged in a high-profile legal battle with Mr. Kaepernick, who has filed a grievance alleging that he has been effectively blackballed from signing with a team because of his political views.
“Although the company’s stand may go down well on its native West Coast, it will be far less welcome in many other locations,” Neil Saunders, managing director of GlobalData Retail, wrote in a research note, adding that the brand “cannot afford to make bad decisions” in a highly competitive sports market.
Mr. Kaepernick revealed his role in the campaign with a Monday tweet that said: “Believe in something, even if it means sacrificing everything. #JustDoIt.” The tweet, which was shared by Nike on its official account, included a black-and-white picture of Mr. Kaepernick’s face.
View image on TwitterAn NFL executive said the league had received a “modest heads-up” that Mr. Kaepernick was going to be used again by Nike, but the exact messaging attached to him and the extent of the revitalized commercial relationship with the player wasn’t made clear.
Nike played down the significance of Mr. Kaepernick’s involvement in its marketing, saying he is one of many athletes featured as part of the brand’s 30th anniversary of the “Just Do It” campaign. A spokeswoman pointed to ads featuring tennis star Serena Williams and NFL player Shaquem Griffin, who became the first one-handed player to be drafted in the Super Bowl era. “All of those athletes embody the ‘Just Do It’ spirit,” she said.
The company declined to comment on whether it had expected any backlash from featuring Mr. Kaepernick.
In a statement, NFL spokeswoman Jocelyn Moore said the league embraces its responsibility to promote change. “The social justice issues that Colin and other professional athletes have raised deserve our attention and action,” she said.
Mr. Kaepernick has been signed with Nike since his days as an emerging star with the 49ers. A person familiar with the negotiations said a new deal was struck that will pay him a “top of the line,” multiyear deal for football players that will include a shoe and apparel line. Mr. Kaepernick hadn’t been featured in Nike campaigns recently and has gone unsigned by teams since March 2017, leading to his collusion grievance against the league.
Mr. Kaepernick’s discussions on a new deal with Nike have taken place since around the start of this year, the person said, which was also in the months before Nike and the NFL completed their new apparel deal. During that time, Around March, Mr. Kaepernick also received interest from other apparel companies including Puma SE and Adidas AG . The person said Mr. Kaepernick’s previous deal with Nike went through mid-2019, all leading to the new pact revealed Monday.
Representatives of Adidas and Puma didn’t respond to requests to comment.
During a question-and-answer session at a sports-industry conference in April, Adidas executive Mark King said the company would “definitely want to sign” Mr. Kaepernick if he signed with a team.
Recent data from a Wall Street Journal/NBC News shed light on the divisiveness of the player protests during the national anthem. In total, 54% of respondents said they found the protests to be not appropriate, versus 43% who did.
But those numbers sharply diverge by demographic. People between ages 18 and 34, a key target audience for any apparel brand, view the demonstrations more favorably—56% said they found the protests appropriate. Older fans overwhelmingly deemed them to be not appropriate, as did Republicans—only 10% said they were appropriate.
Some on social media, including prominent athletes and other celebrities, have praised Mr. Kaepernick, saying he has drawn attention to issues such as police brutality and criminal-justice reform. Basketball star LeBron James, who is sponsored by Nike, shared the image of the new ad campaign on his Instagram page. Actress Jamie Lee Curtis tweeted: “The swish got it right!”
Sentiment expressed about Nike on social media, blogs and other websites turned negative after news of Mr. Kaepernick’s involvement in the campaign was released, according to data from Brandwatch, a social-media monitoring company. Not including neutral references, more than 90% of Nike-related mentions were positive in the days leading up to the news, the data show. Positive sentiment dropped to about 50% on Monday and 40% on Tuesday.
Doug Hamburger, 62, who lives in Knoxville, Tenn., said he and his wife are Gold Star parents and take issue with Nike describing Mr. Kaepernick’s actions as “sacrificing everything.” “We said forget it, we can walk away from Nike,” the retired district manager said.
Miranda Lang, 23, who lives in Washington and works at a nonprofit, said she intends to buy more Nike products as a result of the campaign. “In the last year or so, I have made a conscious effort to spend on brands that support the things I support,” she said. - WSJ
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